# Table 6: Inflation Response to Monetary Shocks (Local Projections)

| Variable | h=1 Full | h=1 OECD | h=2 Full | h=2 OECD | h=3 Full | h=3 OECD | h=4 Full | h=4 OECD | h=5 Full | h=5 OECD |
|---|---|---|---|---|---|---|---|---|---|---|
| delta_policy_rate | 0.266*** (0.074) | 0.266*** (0.074) | 0.242** (0.101) | 0.242** (0.101) | 0.553*** (0.155) | 0.553*** (0.155) | 1.383*** (0.293) | 1.383*** (0.293) | 2.567*** (0.543) | 2.567*** (0.543) |
| Z_1 | 27.192 (17.919) | 27.192 (17.919) | 86.771** (38.606) | 86.771** (38.606) | 212.409*** (73.465) | 212.409*** (73.465) | 308.262** (120.922) | 308.262** (120.922) | 440.475** (196.481) | 440.475** (196.481) |
| Z_2 | -3.838 (2.335) | -3.838 (2.335) | -11.979** (5.031) | -11.979** (5.031) | -29.111*** (9.573) | -29.111*** (9.573) | -41.783*** (15.880) | -41.783*** (15.880) | -59.558** (25.969) | -59.558** (25.969) |
| Z_3 | 0.145* (0.085) | 0.145* (0.085) | 0.445** (0.184) | 0.445** (0.184) | 1.082*** (0.351) | 1.082*** (0.351) | 1.534*** (0.585) | 1.534*** (0.585) | 2.194** (0.960) | 2.194** (0.960) |
| Z_1_x_delta_rate | -0.399** (0.184) | -0.399** (0.184) | -0.520** (0.252) | -0.520** (0.252) | -0.609 (0.380) | -0.609 (0.380) | -1.581** (0.720) | -1.581** (0.720) | -2.666** (1.332) | -2.666** (1.332) |
| rgdp_growth | 0.157*** (0.050) | 0.157*** (0.050) | 0.147** (0.070) | 0.147** (0.070) | 0.082 (0.111) | 0.082 (0.111) | -0.320 (0.242) | -0.320 (0.242) | -0.465 (0.454) | -0.465 (0.454) |
| output_gap | 0.025 (0.080) | 0.025 (0.080) | -0.157 (0.122) | -0.157 (0.122) | -0.030 (0.189) | -0.030 (0.189) | 0.232 (0.368) | 0.232 (0.368) | 0.756 (0.672) | 0.756 (0.672) |
| fiscal_bal_gdp | -0.047 (0.032) | -0.047 (0.032) | -0.140** (0.054) | -0.140** (0.054) | -0.113 (0.090) | -0.113 (0.090) | -0.328* (0.172) | -0.328* (0.172) | 0.303 (0.330) | 0.303 (0.330) |
| kaopen | -0.708*** (0.260) | -0.708*** (0.260) | -1.152** (0.518) | -1.152** (0.518) | -1.794** (0.903) | -1.794** (0.903) | -4.291*** (1.540) | -4.291*** (1.540) | -9.879*** (2.560) | -9.879*** (2.560) |
| nfa_gdp_lag | 0.330 (0.337) | 0.330 (0.337) | 1.023 (0.690) | 1.023 (0.690) | 0.755 (1.301) | 0.755 (1.301) | 0.807 (2.245) | 0.807 (2.245) | -7.143* (4.084) | -7.143* (4.084) |
|---|---|---|---|---|---|---|---|---|---|---|
| R² | 0.269 | 0.269 | 0.165 | 0.165 | 0.201 | 0.201 | 0.289 | 0.289 | 0.444 | 0.444 |
| N obs | 245 | 245 | 237 | 237 | 229 | 229 | 221 | 221 | 213 | 213 |
| N countries | 9 | 9 | 9 | 9 | 9 | 9 | 9 | 9 | 9 | 9 |